The residential battery market comprises battery-based backup power solutions that are installed in households for electricity needs during power outages. Residential batteries store energy from solar panels or the electric grid and supply power to homes even when the grid power is unavailable. Lithium-ion batteries are widely adopted in residential battery systems due to their high energy density, high cycle life, low maintenance requirements, and faster recharging abilities. Lithium-ion batteries are utilized in backup power walls, backup sump pump batteries, and AC coupling systems. The global residential battery market is estimated to be valued at US$ 15.59 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The emergence of backup power solutions is expected to flourish the residential battery market during the forecast period. Backup power solutions supplied through residential batteries provide reliable backup power and improve infrastructure resilience by preventing power outages from cascading or extending in duration. Further, the growing power outages due to aging grid infrastructure, increasing weather-related events, and rising power consumption have augmented the demand for residential batteries as a reliable backup power source. Additionally, supportive government policies and initiatives encouraging residential solar installations along with battery storage are also fueling the market growth. For instance, the California Solar Initiative subsidized more than $2.2 billion for over 600,000 solar energy systems from 2007 to 2016, accelerating the adoption of solar panels integrated with battery storage.
Segment Analysis
The residential battery market is dominated by the lithium-ion battery segment which accounts for over 70% of the total market share. Lithium-ion batteries have emerged as the preferred technology for residential battery storage systems due to their high energy density, low self-discharge rate and longer lifespan compared to other battery technologies. Within lithium-ion batteries, the lithium iron phosphate chemistry dominates as it offers greater safety due to minimal fire hazards.
PEST Analysis
Political: Favorable government policies promoting sustainable energy through incentives for residential battery storage adoption are driving market growth. For example, rebates and tax credits are provided in regions like North America and Europe.
Economic: Declining lithium-ion battery prices and improving charge controller technologies are making residential battery systems more economically viable for homeowners to store solar power and reduce utility bills.
Social: Increasing awareness among homeowners about the need for renewable energy solutions and energy independence is positively impacting the market.
Technological: Advancements in battery materials, battery management systems and integration with solar PV and smart home technologies are improving the performance of residential battery systems.
Key Takeaways
The Global Residential Battery Market Size is expected to witness high growth over the forecast period supported by rising solar PV installation in homes and increasing support through policy initiatives.
The Asia Pacific region dominates the residential battery market currently driven by strong demand from China, Japan and Australia. China has emerged as the largest residential energy storage market globally aided by supportive net metering programs and feed-in-tariffs for households generating solar power.
Key players operating in the residential battery market are Svenska Cellulosa Aktiebolaget SCA, BTG Biomass Technology Group, Eni S.p.A., Fulcrum BioEnergy, SOCOTEC Group, Drax Biomass Inc., Aggregated Micro Power Holdings plc, PVM Environmental Products, VGrid Energy Systems, and Vattenfall AB. Some of the leading players are focusing on strategic partnerships and product innovations to consolidate their position in the high growth residential battery storage market.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
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